I think the problem for home insurance isn’t that they’re worried about the safety of your customers, but that you’re inviting strangers into your home so it could be an increased security risk. Although you may consider them friends and trust them, the insurance company are just going to see them as customers, and as they’ll be thinking of the worst case - strangers who could cause damage to your house or be checking it out as a possible place to break into.
Although you’re probably correct that your liability insurance covers anything happening to your customers in your house, your home insurance will still probably want to know if you have customers visiting, because if they don’t cover you for that and something happens to your house, they may use it as an excuse not to pay out. Hopefully if they already know you work from home then it may be something they’re fine with, but I think it’s the home insurance you have to check the small print on, rather than business.
Personally if someone local wants to pick up from me then I just meet them somewhere like a local coffee shop instead, it feels safer and my house is a mess, so it’s probably best they don’t see it anyway Which is fine when they know what they want and are just collecting something, but I understand doesn’t work so well if they want to browse your items before deciding which they’d like.